The Reserve Bank of India will conduct a massive $10 billion three-year dollar/rupee swap auction next week to infuse durable rupee liquidity into the banking system, which has been reeling under large cash deficits,

India’s central bank, the Reserve Bank of India (RBI), on Friday, February 21, announced that they have decided to conduct a $10 billion USD/INR Buy/Sell auction for the tenure of three years.

Indian banks are facing renewed pressure on their net interest margins (NIMs) as interest rates are expected to decline following the Reserve Bank of India's (RBI) decision to cut its benchmark rate for the first time in nearly five years.

India's central bank will need to inject at least another 1 trillion rupees ($11.54 billion) into the banking system by March-end as durable liquidity remains in a deficit despite a recent cash infusion,